Saab Could Reach the End of the Road Soon
Saab has been on life support for too long.
If General Motors had just refused to sell the ailing brand and sent it off into the sunset along with Pontiac and Hummer, we would have been spared to witness this long-drawn-out suffocating death.
Instead, as we all know, Saab was purchased by Spyker Cars, which intended to return the company to glory. That hasn’t exactly gone according to plan, as the company has struggled to pay its workers, pay its suppliers, develop new product and even produce its current lineup of vehicles. Now, finally, the Saab story may be nearing its inevitable end.
In an ominous sign, the Swedish Enforcement Agency has reportedly contacted the banks holding assets for the troubled company and let them know that they may legally seize assets in an effort to pay back around $625,000 owed to Saab’s unpaid suppliers.
In the grand scheme of things, that doesn’t seem like a lot of money. However, that’s simply the amount that suppliers have requested the Swedish debt authority collect on their behalf that is immediately outstanding. The actual amount that Saab owes suppliers and employees is exponentially higher. At the end of August alone, the company needs to pay its roughly 3,600 employees, a bill that could easily run several million dollars.
Saab, for some reason, still clings to the hope that it can secure financing, but the reality is looking less and less optimistic. At this point it’s just painful, and kind of depressing, to see the company limp along with so many broken limbs.
Pull the plug, Saab… your run was great, and you managed to produce a cool concept or two lately, but let’s face it: Time’s up.
Does it matter to you if Saab goes bankrupt?